The Prime Minister Scott Morrison has confirmed that the Jobkeeper wage subsidy will now be extended until 28 March 2021 – however at a lower rate and with additional eligibility testing.
The current $1,500 a fortnight wage subsidy which has supported Australians through this pandemic will remain in place until 27 September 2020 as originally announced.
New tiered rates will apply from 28 September 2020 to 3 January 2021, being $1,200 a fortnight for full time workers and $750 a fortnight for those who work less than 20 hours a week.
From 4 January 2021, the jobkeeper wage subsidy will be further reduced to $1,000 for full-time employees and $650 for people working less than 20 hours.
Employers will be required to demonstrate that their turnover declined by at least 30% (15% for not for profits and 50% for larger business with turnover over $1b) for both the June and September 2020 quarters to be eligible for JobKeeper payments covering the December quarter.
Employers will then need to demonstrate they meet the turnover decline across the June, September and December 2020 quarters to remain eligible for JobKeeper payments through to 28 March 2021.
JobSeeker unemployment benefit recipients will be able to earn $300 a fortnight without it affecting their payment.
The coronavirus supplement for JobSeeker recipients will drop from the current $550 to $250 at the end of September, and remain at that rate until the end of the year.
We will keep you up to date as more details emerge or if you have any questions, please contact your Cooper Reeves Adviser.